QUAL vs. QLV

Last updated Aug 4, 2026

QUAL (iShares MSCI USA Quality Factor ETF) and QLV (FlexShares US Quality Low Volatility Index Fund) are both Quality Factor funds - QUAL tracks the MSCI USA Sector Neutral Quality Index while QLV tracks the Northern Trust Quality Low Volatility Index. Both are passively managed. Over the past 5 years, QUAL returned 11.26%/yr vs 10.05%/yr for QLV. Their correlation of 0.89 means they have usually moved in the same direction. QUAL charges 0.15%/yr vs 0.22%/yr for QLV.

Performance

QUAL vs. QLV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Quality Factor ETF (QUAL) and FlexShares US Quality Low Volatility Index Fund (QLV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QUAL achieves a 12.08% return, which is significantly higher than QLV's 9.55% return.

QUAL

• 1D: 1.10%
• 1M: 1.52%
• 6M: 9.27%
• YTD: 12.08%
• 1Y: 22.77%
• 3Y*: 18.73%
• 5Y*: 11.26%
• 10Y*: 14.16%
• ALL TIME*: 13.75%

QLV

• 1D: 0.50%
• 1M: 1.91%
• 6M: 6.89%
• YTD: 9.55%
• 1Y: 16.70%
• 3Y*: 15.60%
• 5Y*: 10.05%
• 10Y*: —
• ALL TIME*: 11.67%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
QLV FlexShares US Quality Low Volatility Index Fund	$571.44K	$481.55K	$516.78K
QUAL iShares MSCI USA Quality Factor ETF	$217.13M	$238.90M	$384.89M

QUAL vs. QLV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
QUAL iShares MSCI USA Quality Factor ETF	12.08%	12.65%	22.29%	30.88%	-20.50%	26.94%	17.04%	8.61%
QLV FlexShares US Quality Low Volatility Index Fund	9.55%	12.28%	18.08%	13.71%	-9.97%	26.08%	9.63%	5.97%

Correlation

The correlation between QUAL and QLV is 0.71, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.71
Correlation (3Y) Balances recent behavior with more history.	0.83
Correlation (5Y) Shows whether the relationship held over a longer period.	0.87
Correlation (All Time) Calculated using the full available price history since Jul 16, 2019	0.89

The correlation between QUAL and QLV shifts across timeframes, from 0.71 (1 year) to 0.89 (all time), reflecting how their relationship changes across market environments.

QUAL vs. QLV - Sectors Allocation Comparison

Sectors	QUAL	QLV
Technology	40.2%	30.2%
Financial Services	10.9%	12.3%
Communication Services	10.3%	7.4%
Healthcare	9.2%	14.1%
Consumer Cyclical	9.0%	6.4%
Industrials	7.4%	6.3%
Consumer Defensive	4.3%	7.8%
Energy	2.9%	6.5%
Utilities	2.1%	6.4%
Basic Materials	1.9%	1.3%
Real Estate	1.7%	1.4%

Return for Risk

QUAL vs. QLV — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

QUAL

QUAL Risk / Return Rank: 78
QUAL Sharpe Ratio Rank: 80
QUAL Sortino Ratio Rank: 80
QUAL Omega Ratio Rank: 78
QUAL Calmar Ratio Rank: 71
QUAL Martin Ratio Rank: 83

QLV

QLV Risk / Return Rank: 83
QLV Sharpe Ratio Rank: 86
QLV Sortino Ratio Rank: 89
QLV Omega Ratio Rank: 85
QLV Calmar Ratio Rank: 74
QLV Martin Ratio Rank: 81

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

QUAL vs. QLV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) and FlexShares US Quality Low Volatility Index Fund (QLV). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	QUAL	QLV	Difference
Sharpe ratio: Return per unit of total volatility	1.86	2.13	-0.27
Sortino ratio: Return per unit of downside risk	2.63	3.13	-0.50
Omega ratio: Gain probability vs. loss probability	1.33	1.39	-0.06
Calmar ratio: Return relative to maximum drawdown	2.53	2.71	-0.18
Martin ratio: Return relative to average drawdown	11.33	11.17	+0.16

QUAL vs. QLV - Sharpe Ratio Comparison

The current QUAL Sharpe Ratio is 1.86, which is comparable to the QLV Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of QUAL and QLV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

QUAL vs. QLV - Drawdown Comparison

The maximum QUAL drawdown since its inception was -34.06%, roughly equal to the maximum QLV drawdown of -33.71%. Use the drawdown chart below to compare losses from any high point for QUAL and QLV.

Drawdown Indicators

	QUAL	QLV	Difference
Max Drawdown Largest peak-to-trough decline	-34.06%	-33.71%	-0.35%
Max Drawdown (1Y) Largest decline over 1 year	-9.03%	-6.19%	-2.84%
Max Drawdown (3Y) Largest decline over 3 years	-18.00%	-12.05%	-5.95%
Max Drawdown (5Y) Largest decline over 5 years	-28.23%	-17.93%	-10.30%
Max Drawdown (10Y) Largest decline over 10 years	-34.06%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.07%	-3.93%	-0.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.01%	1.50%	+0.51%

Volatility

QUAL vs. QLV - Volatility Comparison

iShares MSCI USA Quality Factor ETF (QUAL) has a higher volatility of 3.07% compared to FlexShares US Quality Low Volatility Index Fund (QLV) at 2.30%. This indicates that QUAL's price experiences larger fluctuations and is considered to be riskier than QLV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QUAL	QLV	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.07%	2.30%	+0.77%
Volatility (6M) Calculated over the trailing 6-month period	9.70%	5.98%	+3.72%
Volatility (1Y) Calculated over the trailing 1-year period	12.33%	7.88%	+4.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.39%	12.64%	+4.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.10%	16.43%	+1.67%

QUAL vs. QLV - Expense Ratio Comparison

QUAL has a 0.15% expense ratio, which is lower than QLV's 0.22% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

QUAL vs. QLV - Dividend Comparison

QUAL's dividend yield for the trailing twelve months is around 0.85%, less than QLV's 1.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QLV FlexShares US Quality Low Volatility Index Fund	1.52%	1.60%	1.66%	1.60%	1.74%	0.96%	1.24%	0.58%	0.00%	0.00%	0.00%	0.00%
QUAL iShares MSCI USA Quality Factor ETF	0.85%	0.94%	1.02%	1.23%	1.59%	1.20%	1.39%	1.60%	2.00%	1.76%	1.96%	1.63%

Frequently Asked Questions

Can I hold both QUAL and QLV in my portfolio?

QUAL and QLV have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QUAL or QLV?

QUAL has higher volatility (3.07%) compared to QLV (2.30%). In terms of maximum drawdown, QUAL dropped -34.06% vs QLV's -33.71%.

Which ETF is better, QUAL or QLV?

On 5-year performance, QUAL leads with 11.26% vs 10.05% for QLV. On fees, QUAL is cheaper at 0.15% per year. On volatility, QLV has been the lower-risk option at 2.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QUAL or QLV?

Over the 5-year period, QUAL has performed better with a 11.26% return vs 10.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QUAL or QLV?

QUAL is cheaper with a 0.15% expense ratio, compared with 0.22% for QLV.

Which ETF pays a higher dividend yield, QUAL or QLV?

QLV has the higher dividend yield at 1.52%, compared with 0.85% for QUAL.

What is the main difference between QUAL and QLV?

QUAL tracks MSCI USA Sector Neutral Quality Index, while QLV tracks Northern Trust Quality Low Volatility Index. They also come from different issuers: iShares and Northern Trust. Their fees differ too: 0.15% for QUAL and 0.22% for QLV.

Which has better risk-adjusted returns?

QLV currently has the higher Sharpe Ratio (2.13 vs 1.86), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.